The Comparison Analysis Of The Corporate Governance In Wholly Owned Public Corporations Of China And Canada

Public Corporations is a world-wide economic phenomenon, not only does it exist in a socialist country, but also in a capitalist country, the western countries also allow Public Corporations to exist. For China, the reform of Public Corporations is the core of economic revolution. Public Corporations of both China and Canada have an important status in the economy, and bought a proper amount of income to the countries. The corporation that is wholly owned by the government is one of the most important kinds among Public Corporations; the government usually uses it to fulfill government policy, as well as earning income. China is currently in the process of fast-growing economic development; establishing the wholly owned Public Corporations is an important measure in implementing the revolutions of Chinese medium and large Public Corporations. It is also an effective measure for the revolution of the management system of Public Corporations. Therefore, establishing highly effective corporate governance is a crucial part during the process of the revolution of the wholly owned Public Corporations. In order to enable the separation of government and corporations, self-sufficiency and entrance to the world market, the independency of the wholly owned Public Corporations must be enacted. For China to create a management system suitable for future development of the wholly owned Public Corporations, China must carefully examine the systems being used by other countries and then combined with its own political and cultural grounds.This article uses the method of comparison analysis to examine and discuss the corporate governance of the wholly owned Public Corporations of China and Canada. Also, issues about the choice of governance system, the implementation of shareholder's rights, and the establishment of board of directors, auditors and management will be discussed systematically. Through the comparison of thesimilarity and difference between the two countries, we can come up with some useful suggestions for the China's original corporate governance. Through the analysis of the advantages and disadvantages of the corporate governance of Canada's Crown Company, we can come up with some effective advices. The main points of the article are: it is very hard to separate the government and the public corporations completely. In the process of the revolution, China's wholly-owned Public Corporations should clarify the nature and status of the corporation's owner; should enhance the standard when choosing the board of directors; should clarify the rights of responsibilities of the board of directors; should establish an effective system to restrict and encourage the management; should establish an effective audit system, as well as increasing and perfecting the laws and articles for the wholly-owned Public Corporations.